This document provides an overview of OKRs (Objectives and Key Results), a goal setting mechanism. It discusses how OKRs originated from Peter Drucker's MBO framework and were later adopted by companies like Intel and Google. The document outlines some limitations of conventional goal setting and how OKRs aim to address these through their focus on objectives, key results, alignment, transparency and frequent cycles. It provides examples of OKRs from different levels of organizations. Finally, it discusses how OKRs can be implemented and some common pitfalls to avoid when using the OKR framework.

2. A Beginner’s Guide to
OKR!

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5. ‘What is OKR?’
Let’s Explore
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6. OKR or Objective and Key Results
is simply
A Goal Setting Mechanism
Genesis of OKR : A quick journey to the past
1954 1974 1999 2010+
Peter Drucker
Creates MBO
John Doerr
Brings to Intel
Google adopts
OKR
OKR grows
in popularity
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8. Conventional Objective Systems
● Set on annual time horizon
● No description on how to arrive at the objectives
● Siloed
● Tied to compensation
● Top down approach
● Human components left out like personal goals and
strengths
Objective and Key Results
A bi-directional Goal Setting Mechanism
Anatomy of OKR
2 Key components as name suggests
1. Objectives
2. Key Results
Objectives
What one wants to accomplish…
Significant, action-oriented and aspirational
Key Results
How objectives will be met.
Good results are specific, time-bound, aggressive, verifiable &
measurable
Note: OKR is not an Employee Performance Tool
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9. ‘Why OKR?’
Use Case
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10. WHAT VS. HOW Biased towards ‘what’ needs to be done over ‘how’ it is to be achieved
TIME HORIZON Typical annual cycles struggling to match increasingly agile businesses
PRIVATE & SILOED
Trapped and obscured in siloes, often lacking in transparency and commitment
TOP-DOWN Objectives centrally planned, often cascaded sluggishly and ineffectively
RISK APPETITE Often tied to compensation, driving a conservative, ‘safe’ performance culture
Challenges with conventional objective settings?
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11. + Overhaul objective settings
Intrinsic
vs.
Extrinsic
Motivation
Bottom-up
vs.
Top-down
Next right
thing
vs.
Follow orders
Stretch
vs.
Achieve
Futuristic
vs.
Retrospective
Organizational
alignment
vs.
Siloed goals &
KPIs
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12. What will OKR bring to the table?
For simplicity sake OKRs help to:
● Align, engage around measurable and ambitious goals
● All in one direction,with clear priorities and in constant rhythm
FOCUS Limited objectives, KRs lead to sharp focus and discipline
ALIGNMENT Get everyone aligned, engaged to pull in same direction
COMMITMENT Commitment to goals through transparency of goals
TRACKING Clear and systematic tracking of progress
STRETCH Stretch objectives to challenge and have teams reach out
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13. ‘How to Implement’
Practitioners View
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14. INDIVIDUAL OBJECTIVES ALIGNED TO COMPANY OBJECTIVES
OKR implementation framework - 30k ft view
Sense of purpose-why?
Company objectives-what/
Team Objectives
Individual Objectives
Purchase
Mission/Values
Key results-How?
Key Results-How?
Key Results-How?
Actions/Initiatives
Actions/Initiatives
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15. A typical OKR cycle
Brainstorm Annual &
Q1 OKRs
Nov Dec Feb
Jan Mar Apr
Communicate company wide OKRs for Year &Q1
Communicate team Q1 OKRs
Staff share Q1 OKRs
Begin Q2 cycle
Brainstorm OKRs
Communicate company
wide Q2 OKRs
Reflect & score
Weekly check-ins to
track progress
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16. OKRs in action - a few examples
ENGINEERING DEPARTMENT OBJECTIVES (Q2)
Deliver 500 8MHz 8086 parts to CGW by May 30
Key Results
• Develop final art to photo plot by April 5
• Deliver Rev 2.3 masks to fab on April 9
• Test tapes completed by May 15
• Fab red tag start no later than May 1
CORPORATE OBJECTIVE
Establish the 8086 as the highest performance 16-bit microprocessor family, as measured by the below Kr’s
KEY RESULTS
• Develop and publish five benchmarks showing superior 8086 family performance (Applications).
• Repackage entire 8086 family of products (Marketing)
• Get 8MHz part into production (Eng., Manufacturing)
INTEL – OPERATION CRUSH OBJECTIVES (1980)
Focus
Inspire
Commit
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17. OKRs in action - a few examples
CORPORATE OBJECTIVE
Reach 1 B hrs of watch time per day [by 2016], with growth driven by the below KRs
Key Results
• Search time + Main App (+XX%), Living room (+XX%)
• Grow engagement and gaming watch time (X watch hours per day)
• Launch YouTube VR experience and grow VR catalog from X to Y videos
COMPANY OBJECTIVE: DELIGHT CUSTOMERS
Feeding people is a sacred trust. To maintain that trust, we have to deliver the very best client service and the very best food
quality. To succeed as a business, we must ensure that our customers are so happy with our service and product that they have no
choice but to order more pizza and to rave about the experience with their friends
Key Results
• Net Promoter Score of 42 or better
• Order Rating of 4.6/5.0 or better
• 3. 75% of customers prefer Zume to competitor in blind taste test.
YOUTUBE
ZUME PIZZA
Stretch
Inspire
Frame
Why “Aligned”
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18. OKR Hygiene / Common Pitfalls to avoid
Lack of transparency
.
Lack of vision
.
Mind your stretch
Have a grading system to evaluate the
results
Alignment and not just cascading –
bi-directional goal setting
.
Have an OKR Shepard/Champion
Lack of flexibility
Lack of accountability
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19. ABC IPL Team Owner
Objective: Make money for owners
Key Results (KRs)
- WIn IPL 2020
- Increase live telecast hours of ABC matches to x%+
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OKRs in action - a few examples
Head Coach
Objective: Win IPL 2020 matches by x%
Key Results (KRs)
-Batting scores of 200+ runs / game
-Top 3 position in team fielding statistics
-Best team bowling impact nos.
Marketing Head
Objective: Increase live telecast hours of ABC
Key Results (KRs)
-Upgrade Team branding
-Improve media coverage
-Revitalize promotion programs
-Highlight local talent
Bowling Coach
Objective: Best team bowling impact
nos.
Key Results (KRs)
-2 Purple Cap Candidates
Batting Coach
Objective: Batting scores of 200+ runs /
game.
Key Results (KRs)
-Top 3 batting average in powerplay
Publicist
Objective: Improve Media Coverage
Key Results (KRs)
-Players to attend X charity events
-Share event photos on social media
Scouts
Objective: Highlight Local Talent
Key Results (KRs)
-Get 2 local youngsters in the side

20. ‘OKR & AGILE’
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Build a culture of intrinsic motivation, and
engagement, blend with focus and alignment –
business and personal
Balances employee autonomy and accountability
across non-traditional agile teams
OKR cadence ideally suited for today’s fast decision
cycles and volatile business needs
Suited to leverage structure of self-organized,
empowered, autonomous teams
Inherently promotes and enables a
risk taking culture
Mode of continuous objective management aligns
well with rapid learning and development needs of
agile employees and teams
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21. ‘Questions’
We might help you :)
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22. Some References
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Check out our blogs at www.Benzne.com/blogs
https://hbr.org/
Measure what matters by John Doerr
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